Our Shared Future, 5 Years in the Making by maltairport

MALTA INTERNATIONAL AIRPORT PLC

OUR SHARED FUTURE 5 Years in the Making

SUSTAINABILITY REPORT 2019

CONTENTS

CEOâ&#x20AC;&#x2122;s Statement

About this Report and The Report Profile

About the Company

Corporate Responsibility and The Malta Airport Foundation

Good Health and Wellbeing

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Responsible Consumption & Production and Climate Action

Appendices

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CEO STATEMENT

CEO’S STATEMENT

Throughout the past five years, we have consistently asked what the next steps in our journey should be in order for all our operations to remain firmly underpinned by the environmental, social and economic pillars of sustainability. The writing of this report and our membership of programmes – such as the Airport Carbon Accreditation Programme - have been guiding our Corporate Responsibility Committee in formulating the right questions, establishing ambitious yet attainable year-onyear targets, and driving the company to take sustained action to reach these goals. One of our proudest achievements in 2019 - especially given that global greenhouse gas concentrations are at the highest levels they have ever been - was the attainment of an even lower greenhouse gas emissions intensity factor, resulting from a string of initiatives that are being implemented gradually. Last year, we also formalised our commitment to working towards reaching carbon neutrality by coming together with some 200 other airports in signing Airports Council International’s NetZero 2050 Resolution, as well as by drafting a comprehensive Environmental Plan which was approved in 2020.

2019 WAS ANOTHER IMPORTANT YEAR IN OUR SUSTAINABLE JOURNEY, DURING WHICH THE CONCEPT OF SHARED VALUE CONTINUED TO SERVE AS THE MAIN DRIVER OF OUR CORPORATE RESPONSIBILITY STRATEGY. BY EMBRACING SHARED VALUE, IN BOTH OUR INTERNAL AND EXTERNAL CR INITIATIVES AND INVESTMENTS, WE ENSURE THAT WE CAN REMAIN PROFITABLE AND RETAIN A COMPETITIVE ADVANTAGE, WHILST ALSO ACHIEVING OUR ASPIRATION OF BEING A MORE ENVIRONMENTALLY AND SOCIALLY RESPONSIBLE PLAYER WITHIN THE LOCAL COMMUNITY AND THE WIDER AVIATION INDUSTRY. ULTIMATELY, AS THE NAME OF THIS YEAR’S PUBLICATION INDICATES, THIS ALLOWS US TO CONTRIBUTE TO THE SHAPING OF A BETTER SHARED FUTURE FOR ALL.

As we continued to do our bit for the planet, we did not lose sight of the people our actions have a direct impact on: employees; travelling guests; shareholders; and locals living in the airport’s neighbouring villages. We strived to understand the expectations of each one of these stakeholder groups through two-way communication, and did our utmost to meet and exceed these expectations, be it through training and a safer workplace; the delivery of an excellent service throughout the airport journey; a commitment to remaining profitable through a long-term business strategy; or an investment in community projects. Given that Malta International Airport is an important player in Malta’s tourism industry, the independent Malta Airport Foundation continued to enhance the island’s cultural, environmental and artistic offering through collaborations and partnerships with several local organisations and respected

institutions such as the University of Malta. The highlight of 2019 for the Foundation was undoubtedly the successful completion of the first project it took on in 2015 together with Din l-Art Ħelwa; the restoration and subsequent reopening of the 17thcentury Ta’ Xutu watchtower in the south of Malta. With the Covid-19 pandemic having dealt a blow to our inbound tourist numbers - as well as impacted the way in which we are experiencing culture and heritage as we gravitate more towards virtual options - it will be more important than ever that the Malta Airport Foundation continues to seek and create opportunities for investing in product Malta over the coming years. It is after all part of our responsibility to contribute to our island’s recovery by ensuring that the Maltese islands’ offering is on par with that of similar destinations at this crucial juncture for the travel and hospitality industry. As we look ahead, sustainability and long-term objectives will be embedded at the core of our strategy for recovery, in order to ensure that an economic revival neither benefits the few nor happens at the expense of the planet. In order to strike this balance, we shall continue educating our people about the benefits of living within our means, whilst supporting them in adapting to post-pandemic realities. We also remain committed to working with tourism stakeholders and partner airlines on overcoming short-term challenges in order to be able to focus on a long-term quality vision for our country.

ALAN BORG CEO

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ABOUT THIS REPORT

THE COMPANY’S MATERIAL IMPACTS

MALTA INTERNATIONAL AIRPORT PLC’S FIFTH SUSTAINABILITY REPORT COVERS THE PERIOD BETWEEN THE 1ST OF JANUARY 2019 AND THE 31ST OF DECEMBER 2019.

In its first report, the company identified the material aspects tabulated below, which have remained the same for the purpose of this report.

In compiling this report, the company adhered to the new Global Reporting Initiative (GRI) standards. The company’s initiatives and subsequent results are segmented according to five of the United Nations’ 17 Sustainability Development goals: • • • • •

ABOUT THIS REPORT

Inside the Organisation

Category

Material Aspect

SOCIAL

Employment

Labour/Management Relations

Good Health and Wellbeing; Decent Work and Economic Growth; Industry, Innovation and Infrastructure; Responsible Production and Consumption; and Climate Action.

Occupational Health & Safety Training & Education

x x

Diversity & Equal Opportunity

This presentation was opted for in a bid to show that the company’s sustainability endeavours are being made in parallel to those of other organisations that are all working towards the same ultimate goal; that of advancing the wellbeing of present generations and safeguarding the prospects of future generations while adding value through meaningful partnerships and collaborations.

Both Outside & Inside

Equal remuneration for women and men

Investment

Non-discrimination

Freedom of Association & Collective Bargaining

Security practices

Local communities

Anti-corruption

Public policy

GRI 102-50 Reporting period for information provided

Anti-competitive behaviour

Year ending 31st December 2019

Compliance

GRI 102-51 Date of the most recent previous report (if any)

Supplier Assessment for Impacts on Society

Grievance Mechanism for Impacts on Society

Customer Health & Safety

Report Profile

Year ending 31st December 2018

GRI 102-52 Reporting cycle Annual

Product & Service Labelling

GRI 102-53 Contact point for questions regarding the report The Marketing & Communications Department on MarketingandCommunications@maltairport.com

GRI 102-53 Claims of reporting in accordance with GRI standards

ENVIRONMENTAL

The report was prepared in accordance with the GRI standards: Core option.

The Corporate Responsibility Committee, which is chaired by Chief Executive Officer Alan Borg, engaged Pricewaterhouse Coopers (PwC) Malta, an independent assurance provider, to provide assurance with regard to the selected sustainability information marked with a  in the present report for the year ended 31st December 2019. For the GRI content index, please refer to Appendix 4 on pages 66 - 68.

ECONOMIC

Marketing Communications

Customer Privacy

Energy

Water

Emissions

Effluents & Waste

Compliance

Economic Performance

Market Presence

Indirect Economic Impact

Procurement Practices

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ABOUT THIS REPORT

ORGANISATIONAL PROFILE Markets Served Malta International Airport operates from its headquarters in Luqa. Here is some market and connectivity information for the year under review.

Products & Services The company’s products and services can be divided into two.

AVIATION RELATED

NON-AVIATION RELATED

• Airport infrastructure catering for commercial airlines, private jets, aviation schools, cargo and mail • VIP Products: La Valette, High Altitude, VVIP Terminal • Airline office space

• • • • • •

IN 2019, MALTA INTERNATIONAL AIRPORT REGISTERED

7,310,289

SkyParks Business Centre Retail and F&B offering Parking Advertising Property Meteorological Office

PASSENGER MOVEMENTS, OF WHICH

Entities included in the consolidated financial statement or equivalent documents

AROUND

Sky Parks Business Centre Limited

Sky Parks Developments Limited

Airport Parking Limited

2.7 Million

Kirkop PV Farm Limited

were inbound tourists. REVENUE GENERATED

Aviation €70.8M

Non-aviation €29.5M

Total €100.2M

OPERATED TO AND FROM IN

ASSOCIATIONS AND ORGANISATIONS IN WHICH THE COMPANY IS A MEMBER OR ACTIVELY PARTICIPATES

AIRPORTS COUNCIL INTERNATIONAL (ACI) As an ACI member, MLA regularly attends fora and conferences organised by the council. MLA has been participating in ACI’s Airport Service Quality (ASQ) survey ever since its inception in 2005, and is a member of the organisation’s Carbon Accreditation and Customer Experience Programmes.

MALTA HOTELS & RESTAURANTS ASSOCIATION (MHRA) As a member of the MHRA, MLA attends meetings, events, and conferences to keep abreast of developments in the hospitality industry.

MALTA TOURISM AUTHORITY (MTA) Malta International Airport works in close cooperation with this authority to promote the Maltese islands as a year-round destination and attract new business from different markets. MLA’s CEO sits on the board of this authority.

AIRLINES

DIFFERENT DESTINATIONS

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THE COMPANY’S SHAREHOLDING

ABOUT THE COMPANY 10.1%

20.0%

VIE (MALTA) LIMITED ‘A’ Shares

GOVERNMENT OF MALTA ‘A’ & ‘C’ Shares

40.0%

MALTA MEDITERRANEAN LINK CONSORTIUM ‘B’ Shares

29.9% PUBLIC SHARES ‘A’ Shares

96% 4%

FLUGHAFEN WIEN AG

Changes during the Year Under Review THE COMPANY IS OBLIGED TO PROVIDE INFORMATION AND CONSULT ON DECISIONS THAT ARE LIKELY TO LEAD TO SUBSTANTIAL CHANGES IN THE WORK ORGANISATION OR IN CONTRACTUAL RELATIONS, INCLUDING COLLECTIVE REDUNDANCIES AND TRANSFER OF BUSINESS, IN A TIMELY MANNER. IN THE CASE OF A TRANSFER OF BUSINESS, THE NOTICE IS TO BE GIVEN AT LEAST 15 WORKING DAYS BEFORE THE TRANSFER IS CARRIED OUT OR BEFORE EMPLOYEES ARE DIRECTLY AFFECTED BY THIS TRANSFER, AS STIPULATED IN THE LOCAL LEGISLATION; S.L. 452.961.

Infrastructural Changes QUARTER 1 Throughout 2019, the company brought to completion several projects and made a number of infrastructural improvements which are conducive to a better guest experience. Q1 2019 brought to a successful close the company’s Terminal Reconfiguration Project. Having been kick-started in 2016, this project gradually introduced improvements in practically all areas of the terminal, allowing the company to continue delivering on its promise of offering guests a delightful airport experience.

AIRPORT INVESTEMENTS LTD (ASSOCIATE COMPANY OF BIANCHI GROUP OF COMPANIES)

The Company’s Values

Within this quarter, Malta International Airport widened its retail offering with the opening of a new accessories outlet – Parfois – at Departures.

Service Excellence We want our people to provide an excellent service to each and every guest. We aim to be caring and meticulous in everything we do and continually seek to exceed our visitors’ expectations.

Employees

386 EMPLOYEES

Integrity

Sustainability

Teamwork

We embrace the highest standards of integrity in all our actions particularly honesty and commitment.

We cherish sustainable strategies that balance the interests of the community on which we have an impact, the environment and our economic performance over the long term.

We seek to build the success of this company on the teamwork of our people and collaboration with our airport and tourism partners in order to satisfy the needs of our guests.

249 137

ABOUT THE COMPANY

QUARTER 2 Following months of preparation, the airport’s newly installed flight information display screens were plugged into a state-ofthe-art Airport Management System (AMS) in April. This system allows for better communication of important information to passengers, such as flight status and departure gate allocation. Moreover, the AMS provides a centralised dashboard which integrates several important modules through which critical operations are managed in an automated manner, contributing to higher levels of efficiency and minimising human error.

MALES

FEMALES

AROUND 18%

COVERED BY COLLECTIVE BARGAINING AGREEMENTS

GRI 402-1 Minimum notice period regarding operational changes.

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ABOUT THE COMPANY

QUARTER 3 Works on the construction of the company’s multi-storey car park – which will eventually provide 1,300 covered parking spaces as well as a centralised area of operation for car rental companies – continued apace during 2019. By July, the company had completed the bulk of civil works undertaken in relation to an underground link, which will connect the parking area directly to the terminal building. The construction of the multi-storey car park is expected to be completed towards the end of 2020. In August, the company unveiled a new seating area at Departures, which has improved Malta International Airport’s seating capacity by 10%. The area, which was previously occupied by a retail outlet, introduced two seating options to cater to the needs of different travellers. QUARTER 4 Following a temporary closure, the Samsonite retail outlet at landside re-opened its doors to reveal a revamped store in November 2019. On the other hand, within the food court, the Sandella’s eatery closed its doors.

Structural Changes To allow the Innovation and Technology Department to better focus on enhancing the guest experience through the adoption of new technologies, the responsibility for administration and procurement, which was previously assigned to this department, was re-assigned to two different departments. While the Traffic Development and Customer Services Department took on the administrative function, the Safety, Security and Fire Services Department assumed responsibility for procurement. Another important milestone in the evolution of the guest experience at Malta International Airport was the designation of an Experience Design and Commercial Development Manager within the Retail and Property Department.

The previously separate Human Resources and Strategy Department and the Marketing and Communications Department were merged into one department in October 2019. This amalgamation has enabled members of the two departments to work more closely together, especially in relation to the planning of internal events and communications, and better serve the Malta International Airport team. Last year, the company entrusted the responsibility for environmental sustainability to the then-Head of Financial Control, Risk and Compliance, who also led the process of preparing a comprehensive Environmental Plan. This plan was approved by the Board of Directors in May 2020 and circulated internally in July 2020.

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THE COMPANY’S APPROACH to Corporate Responsibility MALTA INTERNATIONAL AIRPORT APPROACHES CORPORATE RESPONSIBILITY THROUGH A TWO-PRONGED STRATEGY, WHICH ENABLES IT TO SET OUT, AND REALISE, A NUMBER OF INTERNAL AND EXTERNAL OBJECTIVES. Overseen by a Corporate Responsibility (CR) Committe, the company’s internal commitments encompass the monitoring and management of its social, economic, and environmental impacts, including efforts to mitigate any negative impacts and maximise positive ones. So as to manage these impacts in a transparent manner, Malta International Airport adopts the Global Reporting Initiative’s (GRI) standards in writing and publishes an annual sustainability report, which is independently audited and made available to the public. On the other hand, external commitments, which are mainly aimed at safeguarding and enhancing Malta’s environmental, cultural, and historical heritage, fall under the responsibility of the Malta Airport Foundation. This independent, non-profit organisation has already been instrumental in implementing a number of important initiatives as can be seen in the next pages of this report.

THE MALTA AIRPORT FOUNDATION

In 2019, a number of milestones were achieved, one of which was the celebration of the fifth anniversary from the non-profit organisation’s establishment. This anniversary was celebrated with the unveiling of a refreshed visual identity reflecting the vibrant hues that characterise the Maltese islands. In October 2019, Mr Josef Formosa Gauci was appointed chairman of the Foundation after then-chairman Mr Frederick Mifsud Bonnici stepped down from this role. During 2019, the Foundation continued to support its ambassador Nicola Said, supported the organisation of two important local events - the Valletta Film Festival and the Joseph Calleja Annual Concert - and continued to make headway with several other projects despite the challenges encountered along the way.

CORPORATE RESPONSIBILITY & THE MALTA AIRPORT FOUNDATION

RESTORATION & RESEARCH PROJECTS THE REOPENING OF TA’ XUTU The Malta Airport Foundation’s investment in the restoration of the Ta’ Xutu watchtower in Wied iż-Żurrieq, which entailed work carried out in two major phases, amounted to €250,000. The completely restored 17th-century watchtower reopened its doors to the public on 10 July 2019 in an event attended by several distinguished guests - including volunteers of the organisation which has guardianship of this site; Din l-Art Ħelwa. The opening of the tower was particularly significant to the Foundation as it marked the successful completion of the first project that was taken on by it. In line with its commitment to keep promoting this picturesque area in the southern region of the island, the Foundation supported the organisation of an outdoor cinema event in September 2019 which was backdropped by Ta’ Xutu. During this event, a selection of films produced by up-and-coming film-makers were shown as well as one of the Foundation’s underwater documentaries Comino: A Secret Paradise.

RESTORATION WORKS ON THE COMBINED OPERATIONS ROOM The Foundation’s financial contribution to this wartime project, which was undertaken in collaboration with Fondazzjoni Wirt Artna, amounts to €334,000 and includes the restoration of a 20-metrewide map used by NATO and the commissioning of waxworks of two prominent wartime strategists; Dwight Eisenhower and Bernard Montgomery. Restoration works on the Combined Operations Room neared completion in 2019, with original plans to open this underground war museum in Valletta in early 2020 having been put on hold due to the Covid-19 pandemic. The series of interconnected underground war rooms featured prominently in the Island Under Siege instalment of National Geographic’s Buried Secrets of WWII series, which offered an exclusive look into the newly restored Combined Operations Room.

THE AREA WHERE TA’ XUTU IS LOCATED FORMS PART OF MALTA’S NETWORK OF NATURA 2000 TERRESTRIAL SITES. IN FACT, THE SECOND PHASE OF THE TA’ XUTU PROJECT FOCUSED ON BOUNDARY LANDSCAPING WORKS INVOLVING THE CHALLENGING TASK OF REHABILITATING THE CLIFF GARIGUE SURROUNDING THE AREA.

For a full list of externally developed initiatives to which the company subscribes and associations in which it is a member, refer to GRI 102-12 and GRI 102-13 on pg 53.

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CORPORATE RESPONSIBILITY & THE MALTA AIRPORT FOUNDATION

Sea & Underwater Projects THE PHOENICIAN SHIPWRECK EXCAVATION RESEARCH ON THE TRIPTYCH OF THE MADONNA DE SOCCORSO Religious art constitutes an important part of Malta’s artistic heritage and adds value to the island’s cultural tourism offering. For this reason the Malta Airport Foundation continued to support research and conservation work undertaken by the University of Malta on a 15th-century Triptych of the Madonna del Soccorso, which is attributed to Renaissance artist Antonio de Saliba. In-depth infrared scanning and the use of innovative 3D imaging technologies have enabled researchers to study the various layers making up the triptych, allowing them to restore the masterpiece as faithfully as possible to its original state. Research on the Triptych of the Madonna del Soccorso was completed in the first quarter of 2020, with the artwork being reinstated at the Mdina Cathedral Museum within a special framework, which is a first of its kind for Malta. The research work conducted on this painting was presented in February 2020 at the prestigious inaugural conference of the University of Cambridge’s Centre for Visual Culture (CVC).

An underwater project which is being supported by the Foundation is the ongoing excavation of a Phoenician shipwreck dating back to the 7th century BC, lying at an impressive depth of 110 metres below sea level. The excavation, which is gradually being carried out over a 4-year period by an international team of experts, marks the first time archaeological divers are operating at such depths. State-of-the-art technologies are being used by the team to study the resting area of the oldest known shipwreck in the central Mediterranean, and to recover the historically significant artefacts it holds. Recovered artefacts are currently on display at the Ċittadella in Gozo, as part of an exhibition entitled Exploring the Phoenician Shipwreck off Xlendi Gozo. In 2019, the Malta Airport Foundation shadowed the technical dive team in a bid to get a closer look at the project and capture footage of the lengthy preparations involved prior to every dive. The Foundation produced a behind-the-scenes video of the project, which has been shared on the airport’s social media platforms as part of the outreach activities involved in getting the public acquainted with this project.

THE FILFLA AND COMINO UNDERWATER DOCUMENTARIES IN MALTESE 2019 saw the Foundation kick-start a new project relating to the Filfla and Comino documentaries; their translation from English to Maltese with the aim of reaching a wider audience whilst promoting the Maltese language. The translated versions of these documentaries, together with the original versions and an educational booklet about underwater life surrounding the two islands, will be donated to every school in Malta in 2020 in an effort to raise awareness about marine conservation and the importance of the ocean among young students attending primary and secondary schools.

THE PROCUREMENT OF TWO SEA BINS In 2018, the Foundation partnered up with eNGO Żibel to support the procurement of two sea bins for the southern localities of Marsaskala and Marsaxlokk. While the Marsaskala sea bin was installed in 2019, the one in Marsaxlokk was installed in August 2020.Sea bins contribute to cleaner waters by catching waste such as microplastic and marine debris, and can potentially capture oils and pollutants floating on the sea surface.

90,000

SHOPPING BAGS

The Sea Bin Yearly Catch 11,900 PLASTIC BOTTLES

50,000

Cigarette Butts

600ML BOTTLES

ARE THE MOST CAUGHT ITEM

Oil

SEABINS ARE CAPABLE OF SKIMMING SURFACE OIL & POLLUTANTS

35,700

DISPOSABLE CUPS

117,647 PLASTIC UTENSILS

Plastic Particles

ARE THE SECOND MOST CAUGHT ITEM IN THE SEABIN

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GOOD HEALTH & WELLBEING

Promoting Healthy Habits & Balanced Lifestyles Among Employees

Good Health & Wellbeing

Active

LOCAL COMMUNITY

Charity Drives

Mental Health

Healthy Habits

Launched in 2017, the scope of this programme was widened a year later to include a mental wellbeing initiative. Through this initiative, employees are offered the possibility to book 12 counselling sessions in any given year with one of the Richmond Foundation’s 3 mental health practitioners should they feel the need for professional help in dealing

with certain issues. Moreover, a one-time collaboration with Sedqa – a local agency that creates awareness about addictive behaviours – resulted in the organisation of informative sessions revolving around stress management, drug and alcohol abuse 4, and bullying at the workplace, spread over two days in November 2019.

HERE’S WHAT JEANETTE ZAMMIT FROM THE OPERATIONS DEPARTMENT HAD TO SAY ABOUT THE SALZBURG GAMES:

Stakeholders

Balanced Lifestyles

Occupational Health & Safety

PREPAREDNESS

MALTA INTERNATIONAL AIRPORT RECOGNISES THAT ITS EMPLOYEES ARE THE DRIVING FORCE OF THE COMPANY, AND IT STRIVES TO KEEP THIS FORCE GOING STRONG BY PRIORITISING MENTAL AND PHYSICAL HEALTH THROUGH ITS WELLBEING PROGRAMME AND SEVERAL COLLABORATIONS WITH EXPERTS IN THESE FIELDS.

“The Salzburg games were very well organised, and it was an exceptional experience to participate in a sporting event that brought together over 7,000 people from 24 different countries.”

PHILANTHROPY

In addition to existing initiatives, such as the possibility to join a nearby gym, free eye tests, and the availability of fruit at the office, in 2019 the company joined forces with a local sportswoman (pictured below) to regularly share healthy recipes and easy exercises with the team as well as sponsored interested employees’ participation in several local runs, walks and marathons. Participation in these athletics events served as training for members of Malta International Airport’s athletics team who, together with employees of other local companies, represented Malta in the European Company Sport Games held in Salzburg in June 2019.

JEANETTE ZAMMIT Operations Department

In collaboration with the Richmond Foundation, the company also offers a Leaving Work Support Programme aimed at easing the transition to a new stage in life for soon-to-be retirees. In its Drug and Alcohol Abuse Policy, the company recognises the health and social concerns that are linked to drug and alcohol depedence, and commits itself to providing employees struggling with an addiction problem with assistance.

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GOOD HEALTH & WELLBEING

A Safe & Secure Airport Environment A STRONGER DRIVE TOWARDS OCCUPATIONAL HEALTH AND SAFETY

89% believe that the Company prioritises employee wellbeing

THE COMPANY COMPLEMENTED ITS WELLBEING INITIATIVES WITH AN EVEN STRONGER DRIVE TOWARDS MAINTAINING A SAFE AND SECURE WORK ENVIRONMENT5, IN WHICH ALL EMPLOYEES COULD CARRY OUT THEIR DAY-TO-DAY TASKS SAFELY.

The Health and Safety committe, which was composed of eight members  representing 2.1%  of the workforce, met thrice during the year under review and completed several projects, the most noteworthy of which were:

While MIA employees are not at high risk of diseases related to their occupation, should this change in future, the company would report it in the same manner as it reports injuries at work. The Occupational Health and Safety accident, incident and damage report and First Aid procedures are processes by which the company reports such risks6.

•

While initiatives geared at creating a safer workplace were spearheded by the company’s Health and Safety Committee7, all employees were empowered to contribute to the creation of this environment through the provision of more than 4,100 hours of health and safety training.

•

• • •

The replacement of small PC screens by 17-inch, antiglare monitors; An investment in First Aid kits, which were placed in areas that previously had no First Aid equipment; The introduction of an eye-wash station in the battery room; A PPE audit, with trained members of the Technical Facilities team being kitted out with new fall-arrest harnesses; The company-wide roll-out of ErgoWize; an online platform that allows employees to carry out an ergonomic assessment of their work station.

WERE EMPLOYEES SATISFIED WITH THE COMPANY’S FOCUS ON THEIR WELFARE? SEEMS LIKE IT! 89% OF RESPONDENTS TO THE ANNUAL EMPLOYEE SURVEY 2019 AGREED THAT THE COMPANY PRIORITISES EMPLOYEE WELLBEING, WHILE THE SCORE TO THIS QUESTION IMPROVED BY 3.47% WHEN COMPARED TO 2018.

+3.47% 5

4.00

4.32

4.47

Score

2 1

The Health and Safety committee conducted a light monitoring exercise which led to the adjustment of the light intensity in the Central Security Screening area. Good lighting is an important Occupational Health & Safety consideration, especially given that inadequate illumination has been linked to low productivity as well as health issues.

0 Survey Year

2017

2018

2019

5 6 7

For more information about Occupational Health & Safety refer to GRI 403-2 on pg 62. GRI 403-3: Workers with high incidence or high risk of diseases related to their occupation. The Health and Safety Committee was set up in accordance with Heading 34 of the Collective Agreement. To date, the company does not have any formal Health and Safety arrangements with Trade Unions.

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GOOD HEALTH & WELLBEING

Stakeholders’ Health & Safety Matter Too In parallel with its efforts to protect the health and safety of employees, Malta International Airport also works towards maintaining a safe and secure airport environment benefitting all stakeholders, particularly airport guests, tenants, and third parties working on the airport campus. Given that projects undertaken on airport grounds very often require the input of contractors and service providers, the Health and Safety team is always involved in ensuring that the highest standards are adhered to at all times by third parties. This is done through regular OHS inspections, risk assessments, approval of machinery being used, and ensuring that the appropriate safety and protective clothing items are always worn. With an aim to heighten awareness about the importance of safe practices among stakeholders, in 2019 the health and safety team awarded certificates of recognition to third party employees working on the multi-storey car park site whose work ethic in relation to health and safety was particularly exemplary.

Leaving a Positive Impact on the Local Community MALTA INTERNATIONAL AIRPORT CONSIDERS THE LOCAL COMMUNITY, ESPECIALLY NEIGHBOURING VILLAGES, TO BE AN IMPORTANT STAKEHOLDER GROUP UPON WHICH IT SEEKS TO LEAVE A POSITIVE IMPACT AND WITH WHICH IT ENDEAVOURS TO FOSTER A MEANINGFUL RELATIONSHIP.

To this end, the company communicates regularly with representatives of these communities and holds biannual meetings with the local councils of villages in its vicinity in an effort to identify ways in which it can support them and understand any concerns they may have. Talks with the local community, particularly neighbouring towns and villages, have led Malta International Airport to establish that their main concerns are: • • •

Airport operations9 and their potential environmental impact10; Parking limitations and congestion; and The wider impact of an emergency scenario unfolding on the airport campus.

Malta International Airport commissions several studies and reports to consider actual or potential impacts on the said communities, in line with the precautionary principle11. Sources of information about actual and potential negative impacts of operations on local communities include:

Preparedness is Key The company is strongly committed to being prepared for any emergency scenario, with this commitment being an integral part of its efforts to safeguard airport stakeholders as well as the airport’s neighbouring villages. Throughout the year, Malta International Airport continued to bolster the emergency preparedness of the company through the organisation of monthly terminal-based emergency drills led by the Terminal Emergency Planning Committee 8 and a number of partial aerodrome-based emergency exercises held in collaboration with the Civil Protection Department and the Armed Forces of Malta. Another important emergency preparedness exercise, which involved several stakeholders, third parties, members of the Airport Care Team, and other airport employees, was one which simulated an aircraft emergency accident. With a slew of lessons learnt from

this exercise, a series of training sessions were then organised for members of the Airport Care Team, who would play a crucial role in the reunification of surviving and uninjured passengers with family members in the eventuality of an emergency. To ensure company-wide preparedness, familiarisation sessions revolving around the Airport Emergency Response Plan and its activation were held for members of most of the company’s departments. Furthermore, following the installation of 15 evacuation chairs at strategic points of the terminal, 17 employees received specialised training on how to operate these chairs in order to be able to help people with reduced mobility evacuate the building safely in case of an emergency. Some of the team members who received their evacuation chair training certificate in 2019 are pictured above.

• • • • • •

In addition to the above, a draft Noise Action Plan (NAP) for 2019 to 2024 covering traffic, industry and aviation was published during the year under review after initial consultations the local Environment and Resources Agency had with various stakeholders and key entities. Currently, official stakeholder consultation on the NAP 2019-2024 is ongoing, with MIA being actively engaged in the discussion.

9 10 8

In 2019, the Terminal Emergency Planning Committee was composed of eight members representing 2.1%  of the workforce.

The water plan The MEPA (Planning Authority) report The number of aircraft movements The master plan for the airport campus (approved in 2018) The risk management register The Environment and Resources Agency’s (ERA) noise mapping exercise (2016)

GRI 413-2 Operations with significant actual and potential negative impacts on local communities For more information about emissions, refer to the Responsible Production and Consumption and Climate Action section on pg 41. For more about the adoption of the Precautionary Principle, refer to GRI 102-11 on pg 53.

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GOOD HEALTH & WELLBEING

Decent Work & Economic Growth

The company also seeks to leave a positive impact by engaging in philanthropic and charitable work within the wider community through its Corporate Responsibility Committee, with a particular focus on supporting projects in the southern region of the island, in line with its endeavour to be a good neighbour.

€17,000+

€181,500+

Diversification Tourism Students RETENTION

ONBOARDING

TOTAL CONTRIBUTIONS

Fair Income Equality

Quality GDP Jobs NON-DISCRIMINATION Diversity Accomplishment & Achievement

Mental Health

Empowerment

TRAINING

€164,500+

COMPANY CHARITY DRIVES

Economic Value

COMMUNITY PHILANTHROPY

GRADUATES

In addition to this, several events and initiatives, such as the annual Lost, Found and Auctioned event, donation boxes placed at different points of the terminal, and Malta Airport staff initiatives, helped the company raise more funds that were donated to different charities. Through these events, the team raised funds which were donated to Dar tal-Providenza, an organisation based in the south of Malta offering support services to people with disabilities and their families, and Hospice Malta, an organisation that provides palliative care. In addition to this, Malta International Airport organised a clean-up in preparation for excavation works as part of the Dar Bjorn project in Ħaż-Żebbuġ. Once completed, this will be Malta’s second residential community home offering services to people with ALS, MS and other neurological conditions.

Freedom of Expression

LOCAL SUPPLIERS

Lost, Found & Auctioned More than €12,000 were raised at Malta Airport’s ninth edition of Lost, Found and Auctioned, and donated to Hospice Malta. An average of 800 lost and found items are claimed and returned to their rightful owners by Malta International Airport’s lost and found team every year. Items that remain unclaimed, on the other hand, eventually find new owners at the annual charity event.

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 25

DECENT WORK & ECONOMIC GROWTH

Decent Work Average age of employees

39 Years

EQUAL OPPORTUNITIES AND PAY The Malta International Airport team continued to grow in 2019, totalling 386 employees12 at the end of the year. In employing new recruits, the company strives to honour the commitment undertaken in its Equality and Diversity Policy of offering fair and equal opportunities to quality jobs to all applicants, and maintaining a level playing field at the workplace for those who eventually join the team. While the company seeks to provide equal opportunities for all and to promote diversity among its workforce, it also deems it to be very important that the local community and local interests are represented at the highest levels of decision-making. During the year under review, in fact, 80%13 of senior management, including the CEO and seven out of eight heads of department, were hired from the local community. A fair income is one of the pillars of decent work and, as shown in more detail in GRI 405-2 on page 65, there is only a marginal difference in the ratio of basic salary and remuneration of men when compared to women for the majority of employee

categories. This can be explained by the fact that in certain departments, males occupy roles, mostly managerial positions, that are attached to a higher salary and remuneration package. Moreover, while the company’s Collective Agreement represents employees at an entry level wage that is at least 49% higher than the minimum wage, the actual entry level wage was significantly higher than this for all employee categories in 2019. Knowing that, at times, people may need a helping hand in getting through difficult situations, the company has in place an Airport Community Kitty. Through this initiative, employees can voluntarily make monthly contributions which are then matched by the company on a quaterly basis. The funds raised are then used to support employees and immediate family members facing challenging times. In 2019, the Leave Bank was formally established; an initiative through which hours of unused leave are not lost but rather donated to employees who would be going through a difficult time or who would have run out of their vacation or sick leave.

Average length of service

10.32 Years

7.3% Turnover rate 2019 9.3% Turnover rate 2018 TRAINING, PROFESSIONAL DEVELOPMENT & EMPOWERMENT Employees who joined the company in 2019 benefitted from 426 hours of induction and on-the-job training, during which the company’s most important policies14 and core values as well as employees’ rights and obligations were explained in detail. In addition to this, 640 hours of classroom-based training centering on service excellence were delivered to new Customer Services employees. In mid-2019, the company improved its onboarding process with the introduction of a ‘buddy system’ whereby new recruits are being assigned a mentor from their department who is partly responsible for easing their integration in the team. Besides welcoming new people on board and providing them with the necessary training to help them become effective members within the organisation, the company also focused on retaining existing employees. A strong committment to supporting the ongoing professional development of its people - with the company’s efforts in this regard being guided by its Training and Development Policy - helped Malta International Airport lower its turnover rate by 2 percentage points to stand at 7.3% at the end of the year. In 2019, the company provided 11,90815 hours of companywide training and supported eight employees with their studies, ranging from diplomas to master’s degrees, both financially and through more flexible work arrangements. Post-training surveys revealed that an encouraging 88% of respondents found their training to be useful and informative, while results from the 2019 Annual Employee Survey showed a 3.2% increase over the previous year in the number of employees who agreed that the company supported their professional development. In an effort to empower employees to contribute to identifying and addressing the training needs of the company, Malta International Airport gave 12 team members representing different departments the opportunity to follow a Train the Trainer course delivered by an aviation industry expert. Through this course, attendees were introduced to successful training techniques and methods of implementation, learnt how to develop engaging content suited to specific training needs, and garnered the necessary skills to deliver training confidently. 14

12 13

For more information, refer to GRI 401-1 on pg 60. GRI 202-2 Proportion of senior management hired from the local community.

HERE’S WHAT ALEXANDRA CARUANA HAD TO SAY ABOUT THE TRAIN THE TRAINER COURSE:

“Train the Trainer was an excellent course as it helped us get a sound knowledge of how to deliver training sessions through a combination of one-on-one coaching and face-to-face teaching. All in all, I felt that the course was very beneficial.” ALEXANDRA CARUANA Aerodrome Safety & Compliance

GRI 205-2 Communication and training on anti-corruption policies and procedures. For more information about how the company handles possible instances of corruption, see GRI 205-1 on pg 60. For more information, including a break-down of training hours by gender, refer to GRI 404-1 on pg 62.

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 27

DECENT WORK & ECONOMIC GROWTH

Sustainable Economic Growth FREEDOM OF EXPRESSION & COMMUNICATION The company has in place a number of important documents, including the Anti-Harassement and Bullying Policy and the Collective Agreement, which seek to safeguard employees’ right to express themselves freely, especially any concerns they may have in relation to their employment, without fear of being discriminated against. Malta International Airport’s Collective Agreement16 specifically stipulates that: “THE COMPANY SHALL NOT DISCRIMINATE AGAINST, INTIMIDATE OR IN ANY WAY VICTIMISE ANY OF ITS EMPLOYEES BECAUSE OF UNION MEMBERSHIP OR FOR THE REASON OF PARTICIPATION IN A UNION’S ACTIVITIES AND/OR ACTIONS.”

JOBS SUPPORTED BY THE COMPANY AND LOCAL SUPPLIERS These documents are complemented with the necessary tools and platforms that enable employees to make their opinions heard and thus feel more involved in the decision-making processes of the company. While the Annual Employee Survey provides the team with the opportunity to give anonymous feedback once a year, the my CEO Time initiative is available throughout the year and allows employees to voice any concerns they may have and make suggestions directly to the Chief Executive Officer.

Malta International Airport directly and indirectly supports around 4,900 jobs, making the company’s role in the local economy a very important one. Throughout the year under review, the company worked with 971 suppliers18 which supported Malta International Airport in delivering a 5-star service to guests through the provision of products and services relating to construction and planning, security, energy and water consumption, maintenance and repairs, IT, and cleaning.

Recognising that effective communication is a two-way system, the company provides feeback to all employees about their performance at work through an appraisal system17 and communicates regularly with the team through email newsletters, the company magazine, and team meetings.

OPPORTUNITIES FOR GRADUATES & STUDENTS Malta International Airport is also committed to helping students and new graduates improve their prospects of finding decent employment, which allows them to put into practice skills they would have garnered during the course of their studies and get a sense of achievement. In 2019, the company offered several opportunities for apprenticeships and traineeships within its technical and operations departments as well as the Meteorological Office to students attending the Malta College of Arts, Science and Technology and the University of Malta. Given that Malta International Airport is an important tourism stakeholder, the company also engaged a number of student workers from the Institute of Tourism Studies to support the airport team during the busier summer months, while gaining

invaluable insight into how a complex organisation such as an airport functions smoothly. In addition to these work opportunities, the company facilitated a total of 19 airport visits for primary school children during the year under review.

HERE’S WHAT CLARA GATT FROM THE MARKETING & COMMUNICATIONS DEPARTMENT HAD TO SAY ABOUT LEARNING OPPORTUNITIES AT MIA:

“While providing me with opportunities to showcase my capabilities and continue to grow professionally, the company also supported me in my pursuit of a Degree in Tourism Studies through flexible work arrangements.”

The break-down below shows that local suppliers19 benefitted from the company’s largest spend in both 2018 and 2019. While local sourcing brings forth many benefits, both economic and environmental, at times, the unique needs of the island’s only airport can only be catered to by foreign companies having very specific expertise. For more information about the company’s suppliers, refer to GRI 414-1 and GRI 414-2 on page 65.

CLARA GATT Marketing & Communications Department

Non-EU

In 2019 no new graduates joined the airport team through the company’s Graduate Development Programme. However, four graduates who had joined the team the previous year successfully completed their one-year programme and were offered the opportunity to start their career with the company in their respective departments, while two other employees who had joined the company as graduates in 2015 were promoted to managers.

Cleaning services at the airport are subcontracted to Servizi Malta. Other airport services which are provided by third parties include ground handling and security. Malta International Airport offers training to third party employees to ensure that everyone working on the airport campus is aligned to the company’s vision of service excellence.

EU Local TOTAL

GRI 407-1: The Collective Agreement specifically safeguards employees from being restricted from exercising freedom of association or collective bargaining. In addition to this, the company provides Unions reasonable assistance to carry out legitimate functions. For a break-down by gender and employee category, refer to GRI 404-3 on pg 62.

18 19

2018

SHARE in 2018

2019

SHARE in 2019

€590,703

€200,432 

0.3% 

€7,324,556

14%

€7,752,415 

12.3% 

€44,537,241

85%

€54,859,049 

87.4% 

€52,452,500

100%

€62,811,896 

100% 

GRI 102-9 A description of the organisation’s supply chain. GRI 204-1 Proportion of spending on local suppliers.

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DECENT WORK & ECONOMIC GROWTH

A STRATEGY TO ATTRACT YEAR-ROUND TOURISM

REVENUE DIVERSIFICATION AND ECONOMIC VALUE

GIVEN THAT TOURISM IS A MAJOR CONTRIBUTOR TO THE LOCAL ECONOMY, MALTA INTERNATIONAL AIRPORT HAS ALWAYS BEEN STRONGLY COMMITTED TO WORKING WITH KEY STAKEHOLDERS, ESPECIALLY GOVERNMENT, TO ADDRESS SEASONALITY.

The company’s diversification strategy is a cornerstone of Malta International Airport’s endeavours to operate in an economically sustainable manner. In 2019, the company’s aviation and non-aviation segments, which are the airport’s main revenue streams, registered growth of 9.2% and 7.6% respectively. Revenue stemming from aviation activities, which reached €70.8 million, was largely driven by Malta International Airport’s traffic performance for the year under review, which was closed off with 7.3 million passenger movements. While non-aviation concessions and rents, including SkyParks Business Centre, were the top drivers of growth within the nonaviation segment, Malta International Airport’s VIP product registered the most noteworthy

The company’s efforts in this regard include an incentive programme, geared at encouraging new airlines to start operating from Malta and partner airlines to extend their operation into the off-peak and winter months, as well as the promotion of the Maltese islands as an ideal year-round destination. These efforts led to 20 new

developments which were first offered in summer 2019 and 90% of which were extended into the shoulder months. It was also encouraging to see that December (+15.2%), October (+8.8%) and November (+8.7%), all of which are winter and off-peak months, were three of the fastest-growing months during the year under review.

In 2019, the efforts of the Traffic Development team landed Malta International Airport in second place, in a category of airports hosting between 4 and 20 million passengers every year, at the World Routes Awards in Adelaide Austraila. These awards seek to recognise excellence and innovation in route development and airline marketing.

upswing (+15.6%) over 2018, reflecting passengers’ growing demand for luxury airport services. The aviation segment contributed 70.6% of total revenues, while the non-aviation segment’s contribution was of 29.4%, translating into a marginally higher share when compared to 2018. In turn, the company solid financial performance during the year under review enabled it to improve the economic value20 distributed in the form of operating costs, wages and benefits, payments to providers of capital and to government, and community investments by 9.1% to reach €74,055,177 in the year under review. The economic value retained also registered an increase of 9.1% to total €26,498,538.

Revenue by Segment

Connected to 125+ Airports

Retail & Property

€29.1 Million 29.0%

EUROPE Airport

€70.8 Million

AFRICA

70.6%

ASIA Other

€0.4 Million 0.4%

GRI 201-1: Direct economic value generated and distributed.

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Industry, Innovation & Infrastructure

Employee Wages and Benefits

Payments to Providers of Capital

Payments to Government

Community Investments

2019 €25.85

2019 €10.84

2019 €18.32

2019 €18.66

2019 €0.39

-6.7%

11.2%

33.9%

11.3%

25.7%

2018 €27.71

2018 €9.75

2018 €13.68

2018 €16.76

2018 €0.31

Total

2018 €67.86

9.1%

Guest Efficiency Experience NEW TECHNOLOGIES

Risk Management Feedback Analysis

Brand Perception

Operating Costs

COMPLIANCE

ECONOMIC VALUE Distributed in Millions

DIGITAL TRANSFORMATION

2019 €74.06

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INDUSTRY, INNOVATION & INFRASTRUCTURE

Investing in a 5-Star Airport

Innovation & Technology

THE COMPANY BELIEVES THAT LONG-TERM INVESTMENT21 IN INFRASTRUCTURE AND INNOVATION IS A CRUCIAL DRIVER OF ECONOMIC GROWTH AS WELL AS AN IMPORTANT CONTRIBUTOR TO A GUEST EXPERIENCE THAT EVOLVES IN PARALLEL WITH TRENDS AND CUSTOMER EXPECTATIONS. In 2019, the company continued to make headway with several projects that have further enhanced the journey through Malta International Airport, and introduced new technologies that are allowing for a better allocation of resources, more efficiency, and compliance with the highest standards of security. Groundwork was also conducted in relation to projects that are expected to be fully delivered over the course of 2020 and 2021, including the new Building Management System and a multilingual Public Announcement System

BETTER SCANNING AND HANDLING OF BAGGAGE A €2.5 million investment in two state-of-the-art Computed Tomography (CT) scanners has significantly enhanced the ability to detect security threats in checked-in luggage. The first CT scanner was installed in the last quarter of 2019, while the installation of the second scanner commenced in the first quarter of 2020. Through the deployment of the Baggage Reconciliation System, on the other hand, airport stakeholders, including ground handlers, airlines and destination airports, have been equipped with a new technology that helps prevent the mishandling of checked-in luggage. The company also upgraded the hold baggage screening conveyor system, refitted all the reclaim belts and introduced an additional reclaim belt.

Whilst the benefits of innovation and technology are undisputed, especially to an operation as complex as that involved in running an airport, a digital transformation also makes an organisation susceptible to new threats and risks. With this in mind, the Innovation and Technology team together with the Marketing and Communications team ran an internal campaign geared at raising awareness among employees about cybersecurity and best practices in this regard. Moreover, in 2019, the Risk Management Committee updated the company’s Risk Management Policy, one of the objectives of which is to support innovation and the identification of areas of opportunity to create value through effective risk management.

THE AIRPORT MANAGEMENT SYSTEM

THE MAINTENANCE MANAGEMENT SYSTEM

Laborious testing and a phased roll-out of the intricate Airport Management System (AMS) culminated in the system’s full implementation in April 2019. The benefits of the Airport Management System, which entailed an investment of €1 million, range from better communication with passengers through flight information screens, to the automated management of resources, which contributes to higher levels of efficiency and lower levels of human error.

A computerised Maintenance Management System, aimed at providing members of the facilities team with a more structured way to schedule maintenance works and make calls for assistance all over the airport campus, was implemented towards the end of the year under review. The system has provided airport technicians with more flexibility and allowed for easier and more efficient fault-reporting by members of staff.

The Multi-Storey Car Park Project During the year under review several milestones were reached in relation to the construction of the airport’s multi-storey car park. The 20-million-euro investment is addressing a persisting guest pain point through the introduction of 1,300 covered parking spaces on the airport campus. The building, which will be directly connected to the terminal through an underground link, will also provide a centralised area of operation for car rental companies, facilitating the process of renting and returning a car. The roof of the complex will be utilised for the installation of a 1,000 kWp photovoltaic system, which will make the car park a zero net energy building. Besides improving the airport infrastructure, the multi-storey car park project created a number of employment opportunities for third party companies and individuals. So far, 38 contractors and sub-contractors have been engaged to provide services and materials in relation to the project, and the number of operatives who are working or have worked on site amounts to 761. 21

One of the new Flight Information Display Screens (FIDS) that are plugged into the Airport Management System.

GRI 203-1 Infrastructural investments and services supported.

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INDUSTRY, INNOVATION & INFRASTRUCTURE

Improving the Guest Experience through Feedback Analysis THE COMPANY’S CONTINUAL INVESTMENT IN THE ISLAND’S ONLY AIR TERMINAL HAS ENABLED IT TO IMPROVE THE GUEST EXPERIENCE BY LEAPS AND BOUNDS OVER THE YEARS. IN DESIGNING A BETTER EXPERIENCE, THE COMPANY STRIVES TO UNDERSTAND GUESTS’ NEEDS AND EXPECTATIONS BY ANALYSING THE FEEDBACK RECEIVED THROUGH DIFFERENT CHANNELS AND SURVEYS. THE CUSTOMER EXPERIENCE COMMITTE BRINGS TOGETHER REPRESENTATIVES OF MOST OF THE COMPANY’S DEPARTMENTS ON A REGULAR BASIS TO DISCUSS FEEDBACK AND ACTION POINTS TO ADDRESS NEGATIVE COMMENTS AND SUGGESTIONS.

During the year under review, five of the company’s departments continued to work closely on the introduction of interactive feedback stations, which will eventually be located at strategic points of the terminal building replacing comment cards. These stations will make it easier for guests to give feedback, whilst allowing the company to analyse the feedback received faster. By eliminating around 1,000 physical comment cards, which are generally submitted during the course of a typical year, the company will also move a step closer towards a paperless operation. While the company strives to meet and exceed the expectations of all guest profiles based on the feedback received, it feels particularly responsible for catering to the specific needs of certain passengers through tailor-made services. Following the launch of the Journey Facilitation Programme for passengers with autism in 2018, and the overwhelmingly positive comments from users of this programme, the company went on to improve the service with the publication of a visual guide in 2019. The guide, which takes one on a step-by-step visual journey through the terminal, is aimed at preparing travellers with autism for the airport journey ahead of their actual trip.

“Very friendly, and so helpful, nothing seems to be any trouble, the staff put you at ease when you’re panicking and calmly sort your problems.”

AIRPORTS COUNCIL INTERNATIONAL’S CUSTOMER EXPERIENCE PROGRAMME IN SEPTEMBER 2019, MALTA INTERNATIONAL AIRPORT WAS ACCREDITED THROUGH AIRPORTS COUNCIL INTERNATIONAL’S (ACI) CUSTOMER EXPERIENCE PROGRAMME. The programme seeks to assess how airports address and evolve the guest experience based on eight pillars of experience management including customer understanding, service innovation and airport culture, whilst steering participants towards the best industry practices. Having successfully achieved Level 1 accreditation, Malta International Airport has recently submitted further evidence of its commitment to designing better airport experiences in order to be able to proceed to Level 2 of this programme.

THE BRAND PERCEPTION SURVEY

AIRPORT GUEST

“Staff who work at Malta International Airport are very polite and helpful. The airport is very clean and tidy. All processes work very well to make it a pleasure to travel through.” AIRPORT GUEST

AIRPORTS COUNCIL INTERNATIONAL’S AIRPORT SERVICE QUALITY SURVEY The commitment of the airport team towards achieving Malta International Airport’s vision of service excellence has allowed the company to score consistently high ratings on the 34 key performance indicators, including terminal ambiance, courtesy of staff, and facilities, comprising the Airports Council International (ACI) Airport Service Quality (ASQ) survey. In 2019, Malta International Airport once again registered a high overall passenger satisfaction score of 4.36, and went on to be awarded the prestigious title Best Airport in Europe within its size category for the second year running.

The company’s Brand Perception Survey is carried out among locals on a biannual basis by an independent market research consultancy firm. Through this particular survey, the company aims at gauging locals’ perception of Malta International Airport, as well as its key sub-brands; SkyParks Business Centre and La Valette Club. The feedback gathered through this survey enables the company to better shape the ongoing effort put into making Malta International Airport one of the best European airports, as well as an airport the local population can be proud of. Some of the indicators scoring the highest percentages in 2019 included Malta International Airport being an important contributor to the Maltese economy (87%) and a trustworthy brand (81%). Moreover, a reassuring 96% of respondents said that they were proud of Malta International Airport, while 97% were satisfied with the service provided by the airport.

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Responsible Production and Consumption and Climate Action

Single-Use Plastic

INDUSTRY, INNOVATION & INFRASTRUCTURE

Malta International Airport previously entrusted the quarterly mystery shopping exercises to a local market research consultancy firm. The information desk mystery shopping exercises were conducted with an aim to assess the services being provided at the Information Desks found within the Check-in Hall and at Departures, based on criteria such as the appearance of staff members at these two points and their courtesy in dealing with customers. Below are results for some of the indicators, including the overall impression, for the year under review compared with the previous year. The Mystery Shopping exercises were discontinued in quarter 4 2019, as the company reached a decision to adopt ACIâ&#x20AC;&#x2122;s Customer Experience Accreditation Programme and started working on putting together a Customer Experience Plan for 2020, which includes the organisation of focus groups centering on the guest experience.

Q1 2018

Q1 2019

Q2 2018

Q2 2019

Q3 2018

Q3 2019

Q4 2018

Q4 2019

Appearance

96%

62%

74%

66%

78%

73%

66%

N/A

Initial Contact with Customer

90%

87%

86%

85%

86%

87%

N/A

Helpfulness & Friendliness of Staff

84%

85%

87%

86%

84%

87%

N/A

Overall Impression

96%

94%

93%

98%

97%

94%

100%

N/A

Quarter

Waste Management

Carbon Footprint

INFORMATION DESK MYSTERY SHOPPING EXERCISES

EFFICIENCY

NetZero 2050

ENVIRONMENTAL POLICY

Indicator

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 39

Electricity Consumption & Greenhouse Gas Emissions

Climate Action 22 GIVEN THAT THE AVIATION INDUSTRY CURRENTLY ACCOUNTS FOR 3% OF GLOBAL CARBON EMISSIONS AND THAT CLIMATE CHANGE IS ONE OF THE BIGGEST CHALLENGES FACED BY COUNTRIES AND BUSINESSES NOWADAYS, MALTA AIRPORT PRIORITISES CLIMATE ACTION WITHIN ITS WIDER ENVIRONMENTAL EFFORTS. The company’s measures and initiatives in this regard are aimed at ensuring that climate change and its effects, including extreme weather events and rising sea levels, do not develop into a threat to Malta International Airport’s operation, the wellbeing of its stakeholders, and the attractiveness of the Maltese islands as a year-round tourist destination. The company’s efforts to address climate change and manage its effects, become even more significant in light of the fact that weather and beaches23 are two of the top factors that pull tourists towards the Maltese islands.

0.74kg

In order to address risks, including potential ones posed by climate change, and ensure the company’s long-term viability, Malta International Airport has adopted a standard methodology which is based on the guiding principles of the International Risk Management Standard ISO 31000:2009 and the COSO (Committee of Sponsoring Organisations of the Treadway Commission) standard for Enterprise Risk Management. A Risk Committee was set up in 2015 to oversee the development and implementation of the Risk Management Policy and Procedures, with the committee’s role including the identification of the threats posed by climate change and the provision of possible solutions. During the year under review, the company started to draft an Environmental Plan with the aim of formalising its commitment to safeguarding the environment and doing its part to address climate change by managing its greenhouse gas (GHG) emissions. In 2019, Malta International Airport also signed Airport Council International’s NetZero 2050 resolution, joining around 200 other airports that have pledged to reach net zero status for carbon emissions under their control by 2050. A 998-kilowatt peak photovoltaic system, which was commissioned in the third quarter of 2019, tripling the airport’s capacity to generate clean energy, is one of the eco-invstments that will help Malta International Airport minimise its carbon footprint even further. While 2019 was an important year for climate action at Malta International Airport, having been a member of ACI’s Airport Carbon Accreditation Programme since 2016, the company has long been committed to understanding its carbon emissions and measuring its footprint.

of CO2 per passenger

AT THE END OF 2019

ONE OF THE AIRPORT’S TOP ENVIRONMENTAL TARGETS IS THE YEAR-ON-YEAR REDUCTION OF ITS GREENHOUSE GAS EMISSIONS. A noteworthy drop of 7.4 per cent over 2018 was registered in this regard, with the GHG emissions intensity standing at 0.74 kg of CO2 per passenger at the end of 2019. This drop partly resulted from an energy-saving programme through which the gradual replacement of lighting, air-conditioning units and other equipment with more energy-efficient alternatives is being undertaken. These initiatives, together with the generation of 927,223 kWh of clean energy from the airport’s PV panels, led to a decrease of around 1 per cent in the company’s electricity consumption24. This drop gains significance when one takes into account the increase of 8.4 per cent registered by passenger traffic.

Source of Emissions

2018

2019

Scope 1 Emissions

188

235 

Scope 2 Emissions

5,464**

5,196 

6,806,232*

7,310,033*

0.80**

0.74

Passenger Movements CO2 Emissions Intensity (Kg CO2 / Pax.)

* These figures do not include transit passengers and freight as they do not contribute significantly to emissions. ** The above calculations and results use the official Enemalta Residual Mix Emission factor for Scope 2 emissions for 2018, namely 0.383 kg CO2 /K.

22 23

GRI 201-2: Financial implications and other risks and opportunities due to climate change. Source: MISCO Passenger Profile Report January – December 2019

For a more comprehensive break-down of electricity consumption, refer to GRI 302-1 on pg 58.

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RESPONSIBLE CONSUMPTION AND PRODUCTION AND CLIMATE ACTION

Fuel Consumption THE COMPANY SET A TARGET TO REDUCE ITS OVERALL FUEL CONSUMPTION25 OVER 2018, HOWEVER, THIS GOAL WAS NOT WHOLLY ACHIEVED DURING THE YEAR UNDER REVIEW. WHILE PETROL CONSUMPTION REGISTERED AN 8.9% DECREASE, THE CONSUMPTION OF DIESEL, WHICH ACCOUNTS FOR THE LARGER PART OF FUEL USED BY THE AIRPORT, WENT UP BY A SIGNIFICANT 26.3%.

Water Consumption This increase stemmed from several factors that were beyond the company’s control including a busier airport operation necessitating the more frequent use of operational cars and airport sweepers, an increase in the fuel consumed by stand-by generators due to a number of power cuts in the last quarter of 2019 and more frequent test runs. Moreover, throughout 2019, a shuttle bus service to and from the terminal building was offered to employees and stakeholders who had to be relocated to a temporary car park since the area previously used as employee parking is currently being developed into a multi-storey parking. This service alone, which was provided to facilitate employees’ and stakeholders’ commute especially on days with very hot or wet weather, accounted for around 10,000 litres of diesel.

WATER IS A PRECIOUS RESOURCE, ESPECIALLY IN DENSELY POPULATED COUNTRIES LIKE MALTA WHOSE ANNUAL PRECIPITATION LEVELS CAN ALSO BE A CAUSE FOR CONCERN. As shown in the table below, a drop in the volume of rainwater harvested during the year under review was registered mainly due to lower levels of precipitation measured when compared to 2018, with rainwater ultimately contributing 27% 26 of the total water withdrawn in 2019. Run-off tests conducted in the first quarter of 2019 returned satisfactory results 27. Besides rainfall, Malta International Airport’s other water sources 28 are the Water Services Corporation and groundwater supplied by another water provider. During the year under review, an overall reduction of 8.5% in total water consumption was achieved. The volume of non-potable water consumed

decreased by more than 24,000m3 largely due to a series of repair works to address water leakages carried out between 2017 and 2019, which led to less water losses from irrigation. However, the company’s total potable water consumption increased by 10,590m3 largely due to a busier airport operation. A total of 84,865m3 of groundwater was used during the year under review, representing less than 0.004% of the total groundwater volume in Malta that can be sustainably extracted (in the region of 25,000,000m3, as per FAO report 2006). This is well below 5% of the groundwater source, which means that the airport’s water consumption is not considered to be significant 29.

GRI 303-1 WATER WITHDRAWAL BY SOURCE Volume 2018 m3

Volume 2019 m3

Change 2018/19 in m3

Water Services Corporation

21,418

32,008 

10,590

Groundwater from other supplier (non-potable / borehole)

95,154

84,865 

(10,289)

Rainwater Collected (calculated)

56,232

42,451 

(13,780)

172,804

159,324 

(13,497)

Source

Total Consumption

Analysis of Honey Samples to determine Air Quality

During the year under review, the company continued with its vehicle replacement programme whereby older vehicles are being substituted by more efficient models and a number of electric hybrid vehicles are being procured. Some of the newly procured vehicles emit as little as 36 g of CO2/km, putting the company on track to complying with the European Union’s emission targets for new cars and vans.

Malta International Airport has been housing an apiary on its airfield for the past few years. Honey samples gathered from this apiary are tested for concentrations of heavy metals and polynuclear aromatic hydrocarbons (PAH) which, in turn, allows for an analysis of the impact of air traffic operations on the quality of the air in the area. Results for 2018 and 2019 show that the levels of heavy metals and PAH in the samples tested are within the permitted levels as defined by the EU Legislation No.1881/2006. Moreover, the results show that the honey samples produced at the airport do not contain any heavy metal/PAH contamination, other than that expected to be present in the natural environment. This is evident since test results are comparable to the honey samples produced in Mtaħleb, which is a rural location.

26 27 28 25

For a more comprehensive break-down of fuel consumption, refer to GRI 302-1 on pg 58.

GRI 303-3: Percentage and total volume of rainwater harvested and used Quality of storm water by applicable regulatory standards For more information about the volumes withdrawn by source, refer to GRI 303-3 on pg 58. GRI 303-2: Water sources significantly affected by withdrawal of water.

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 43

RESPONSIBLE CONSUMPTION AND PRODUCTION AND CLIMATE ACTION

Eliminating Single-Use Plastic and Waste Management

WASTE MANAGEMENT AND SPILLS30 The table below shows the types of waste generated by the company, the quantity for each type, and the method of disposal.

Unit

Method of Disposal

2018

2019

Change 2018/2019

General waste

Landfill

680,688

751,360 

70,672

Mixed Industrial waste (includes construction material & sand)

Landfill

252,100

488,016 

235,916

Cardboard

Recycling

81,615

108,095 

26,480

Glass

Recycling

24,500

26,860 

2,360

Plastic

Recycling

10,550

5,810 

-4,740

Iron and Steel

Recycling

5,540

0

Tyres

Recycling

4,920

3,340 

-1,580

Paper

Recycling

2,990

2,290 

-700

Dry powder/Gravel

Recycling

600

0

Total (Non-hazardous waste)

Landfill

1,063,513

1,395,771 

322,248

Hazardous Waste IT/Electronic Equipment

Disposal/Destruction by Third Party

1,020

1,100 

Hazardous Waste Batteries

Disposal/Destruction by Third Party

0

-3

Hazardous Waste - Other (includes fluorescent tubes)

Disposal/Destruction by Third Party

3,489

516 

-2,973

Total (Hazardous waste)

4,512

1,616 

-2,896

460

437 

-23

Type of Waste

In parallel with its ongoing endeavours to reduce water, electricity and fuel consumption, the company kick-started a process geared at helping it better manage waste. Through this exercise, the company’s three main types of waste were identified, with these being landfill, recyclable and hazardous waste. Besides replacing all plastic water bottles previously used during internal meetings with water jugs, eliminating the use of plastic stirrers, and discontinuing an initiative whereby passengers were given a complimentary bottle of water, Malta International Airport also stopped using balloons at route launches and children’s events at the airport. Whereas until 2018, around 60 balloons were used to celebrate the inauguration of each new route, in 2019 the company celebrated the launch of 11 new routes in a more environmentally conscious manner. All in all, everyone’s efforts led to a reduction of 4,740 kilos in the amount of plastic waste generated by the company when compared to 2018, as can be seen in the waste management and spills table on the next page. It is also worth noting that paper waste dropped by 700 kilos as a result of several initiatives rolled out during the year under review: • MEMBERS OF THE MANAGEMENT TEAM WERE EACH GIVEN A TABLET AND ENCOURAGED TO PRINT LESS; • PRINTER PAPER IS LESS FREELY AVAILABLE, WITH ITS USAGE BEING MONITORED MORE CLOSELY; • A FORMERLY PAPER-BASED MAINTENANCE MANAGEMENT SYSTEM WAS CONVERTED TO A DIGITAL FORM.

THE TEAM WERE ENCOURAGED TO CONTRIBUTE TO THE ELIMINATION OF SINGLEUSE PLASTIC BY BRINGING THEIR OWN CUTLERY AND PLATE TO THE MONTHLY EMPLOYEE EVENTS ORGANISED BY THE COMPANY’S SPORTS AND SOCIAL COMMITTEE. TO MAKE IT A BIT EASIER FOR EMPLOYEES TO GET ON BOARD THE SINGLE-USE PLASTIC BAN WAGON, THE COMPANY GIFTED EACH TEAM MEMBER A REUSABLE BAMBOO CUTLERY SET.

Number of open type skips emptied (general waste from various areas, mainly related to works)

Number

WASTE

SPILLS

While the company generated construction waste from the many infrastructural projects undertaken during the year under review, no quality data is available to be able to estimate the weight. Construction waste generated from works carried out by Malta Airport staff is disposed of in skips placed on site, with the company noting the need to find a suitable quarry for the proper disposal of this waste. Waste from larger scale works supervised by the Projects Department is disposed of by the respective contractors. 30

Landfill

Several minor fuel spills as well as a couple of relatively serious fuel spills were reported in 2019. Immediate action was taken to clear these spills in order to prevent contamination and damage by using sand or other oil absorbents, absorbent pads, detergents or the airport sweepers according to the nature of the spill. It is worth noting that one of the commonly used oil absorbents is a vegetable-based product that is not toxic to the environment.

GRI 306-2 and GRI 306-3. OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 45

APPENDICES

APPENDIX 1:

Appendices

Criteria for reporting on select sustainability information – 31st December 2019 The following reporting criteria are based on the new GRI sustainability reporting guidelines.

Description of Indicator

Page in Report

Aspect

Indicator

Economic

Market Presence

GRI 202-1

Ratio of standard entry level wage by gender compared to local minimum wage

1. 2019 entry level salaries 2. 2019 actual lowest salary paid

1. Information extracted from the most recent Collective Agreement (2018) 2. Information extracted from the company’s payroll records

Procurement practices

GRI 204-1

Proportion of spending on local suppliers at significant locations of operations

12.6% of total suppliers are being outsourced to EU and non-EU suppliers.

Information was extracted from the Group’s purchase ledger, adjusted to include accruals, and is inclusive of VAT

Energy

GRI 302-1

Energy consumption within the organisation

1. Indirect energy consumption in kWh (electricity) 2. Direct energy consumption in litres (Fuel: Diesel & Petrol)

1. Electricity consumption was based on MIA meter readings and supplier invoices (net of metered energy consumption by tenants/airport partners) 2. Consumption of fuel purchased was based on supplier invoices

Water

GRI 303-1

Water withdrawal by source

Water sourced from: 1. Water Services Corporation 2. Groundwater 3. Rainwater collection

1. Water consumption was based on MIA meter readings and supplier invoices 2. Information for groundwater extraction was based on third party invoices and meter readings 3. Estimates based on catchment areas and MET office rainfall readings

GRI 303-3

Percentage and total volume of water recycled and reused

Rainwater collected/ stored for reuse as a percentage of total water withdrawn

Information as per GRI 303-1

Environment

Specific

Basis of Measurement

Category

Aspect

Indicator

Environment (Contd.)

Emissions

Social

Employment

Occupational health & safety

Training & education

Diversity & equal opportunities

Equal remuneration for men & women

1. Injury rate 2. Lost day rate 3. Absentee rate

Basis of Measurement

Page in Report

We have undertaken a limited assurance engagement in respect of the selected sustainability information listed below and identified with a in the Malta International Airport plc (‘MIA’) sustainability report for the year ended 31 December 2019 (‘Sustainability Report 2019’) (‘Identified Sustainability Information’). IDENTIFIED SUSTAINABILITY INFORMATION The Identified Sustainability Information for the year ended 31 December 2019 is summarised below:

Average hours of training per year per employee by gender, and employee category

Information was based on records kept by the Company

GRI 404-3

Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

Information was based on records kept by the company

Composition of Governance Bodies and breakdown of employees per employee category, age group, minority, group membership, and other indicators of diversity

Information was based on terms of reference for each committee and payroll records

Rate of basic salary and remuneration of women to men by employee category, by significant locations of operation

Information was extracted from the company’s payroll

GRI 405-2

Independent limited assurance report on the Malta International Airport plc sustainability report for the year ended 31 December 2019 To the Corporate Responsibility (CR) Committee of the Malta International Airport plc

GRI 404-1

GRI 405-1

APPENDIX 2:

• • • • • • •

Ratio of standard entry level wage by gender compared to the local minimum wage, as identified within GRI 202-1; Proportion of spending on local suppliers, as identified within GRI 204-1. Energy consumption, as identified within GRI 302-1; Water consumption, as identified within GRI 303-1 and GRI 303-3; Greenhouse gas emissions (Scope 1 and 2) (‘GHG’), as identified within GRI 305-1 and GRI 305-2; Waste disposal, as identified within GRI 306-2; Certain social indicators, related primarily to employee related information, as identified within GRI 401-1, GRI 403-2, GRI 404-1, GRI 404-3, GRI 405-1 and GRI 405-2;

Our assurance was with respect to the year ended 31 December 2019 information only and we have not performed any procedures with respect to any other unidentified elements included in the Sustainability Report 2019, and, therefore, do not express any conclusion thereon.

63-64

CRITERIA The criteria used by MIA to prepare the Identified Sustainability Information is set out in Appendix I ‘Criteria for reporting on select Sustainable Information - 31 December 2019’ on pages 47 and 48 of the Sustainability Report 2019 (the “Criteria’). MIA’S RESPONSIBILITY FOR THE IDENTIFIED SUSTAINABILITY INFORMATION MIA is responsible for the preparation of the Identified Sustainability Information in accordance with the Criteria and the GRI Sustainability Reporting Standards (the ‘GRI Standards’). This responsibility includes:

› Designing, implementing and maintaining internal controls relevant to the preparation and presentation of the Identified Sustainability Information that is free from material misstatement, whether due to fraud or error; › Applying an appropriate basis of preparation and making estimates that are reasonable in the circumstances; › Establishing objective criteria for preparing the Identified Sustainability Information; › Application of GRI principles to ensure compliance with GRI Standards at the Core level; › Responsibility for the content of the Sustainability Report 2019, including responsibility for determining the Material Aspects (as defined in GRI Standards), Indicators (as so defined) and other content of the Sustainability Report 2019; and › Retention of sufficient and appropriate evidence to support the aforementioned.

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 49

INDEPENDENT ASSURANCE REPORT

INHERENT LIMITATIONS The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different, but acceptable, measures and measurement techniques and can affect comparability between entities. In addition, GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of different gases. OUR INDEPENDENCE AND QUALITY CONTROL We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards, issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Our firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. OUR RESPONSIBILITY Our responsibility is to express a limited assurance conclusion on the Identified Sustainability Information based on the procedures we have performed and the evidence we have obtained. We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information’, and, in respect of greenhouse gas emissions, International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements, issued by the International Auditing and Assurance Standards Board. These standards require that we plan and perform this engagement to obtain limited assurance about whether the Identified Sustainability Information is free from material misstatement.

LIMITED ASSURANCE CONCLUSION Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the MIA’s Identified Sustainability Information for the year ended 31 December 2019 is not prepared, in all material respects, in accordance with the Criteria. RESTRICTION OF USE This report, including the conclusion, has been prepared solely for the CR Committee of MIA as a body, to assist them in reporting on MIA’s sustainable development performance and activities. We permit the disclosure of this report within the Sustainability Report 2019, to enable the CR Committee to demonstrate that it has discharged its governance responsibilities by commissioning an independent assurance report in connection with the Sustainability Report 2019. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the CR Committee as a body and MIA for our work or this report save where terms are expressly agreed and with our prior consent in writing.

PricewaterhouseCoopers 78 Mill Street, Zone 5, Central Business District, Qormi CBD 5090, Malta

A limited assurance engagement involves assessing the suitability in the circumstances of MIA’s use of the Criteria as the basis for the preparation of the Identified Sustainability Information, assessing the risks of material misstatement of the Identified Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the Identified Sustainability Information. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. The procedures we performed were based on our professional judgment and included inquiries, observation of processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and agreeing or reconciling with underlying records.

Romina Soler, Partner 30 September 20

Given the circumstances of the engagement, in performing the procedures listed above we: › Made inquiries of the persons responsible for the Identified Sustainability Information; › Obtained an understanding of the process for collecting and reporting the Identified Sustainability Information; › Performed limited substantive testing on a selective basis of the Identified Sustainability Information to check that data had been appropriately measured, recorded, collated and reported; › Evaluated whether the Company’s methods for developing estimates are appropriate; and › Considered the presentation of the Identified Sustainability Information. Our procedures were limited to the Identified Sustainability Information, and we have not performed any procedures in relation to any other GRI disclosures included in the Sustainability Report 2019, including the completeness thereof. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether MIA’s Identified Sustainability Information has been prepared, in all material respects, in accordance with the Criteria.

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 51

GENERAL DISCLOSURES

APPENDIX 3:

GRI 102-11 DESCRIBE HOW AND WHY THE PRECAUTIONARY APPROACH OR PRINCIPLE IS ADDRESSED IN THE ORGANISATION MIA observes the Precautionary Principle by adhering to every legal obligation which applies to it and which is derived from the Precautionary Principle.

General Disclosures

GRI 102-12 A LIST OF EXTERNALLY DEVELOPED ECONOMIC, ENVIRONMENTAL AND SOCIAL CHARTERS, PRINCIPLES, OR OTHER INITIATIVES TO WHICH THE ORGANISATION SUBSCRIBES, OR WHICH IT ENDORSES, AND GRI 102-13 A LIST OF THE MAIN MEMBERSHIPS OF INDUSTRY AND OTHER ASSOCIATIONS, AND NATIONAL OR INTERNATIONAL ADVOCACY ORGANISATIONS

This appendix includes additional detail on certain general, economic, environmental and social disclosures.

GRI 102-8 INFORMATION ON EMPLOYEES AND OTHER WORKERS

311

Number of Employees Full-time

Part-time

Total

Indefinite Contract

212

218

Definite Contract

135

168

Female

Male

Total

Full-time

153

212

Part-time

Indefinite Contract

Female

Male

Total

Full-time

135

Part-time

Female

Male

Total

Full-time

111

236

347

Part-time

Apprentices

Definite Contract

All

› Incentive Programme for Airlines including schemes such as free landing in winter, reductions on parking and marketing support (established in 2007, revised in 2012) › The Malta Airport Foundation; an independent non-profit organisation that invests in Maltese heritage and the environment (established in 2015) › Participant in Airport Council International’s Airport Service Quality Survey (joined in 2006) › Participant in Airport Council International’s Airport Carbon Accreditation Programme at the Mapping Level (joined in 2016) › Participant in Airport Council International’s Customer Experience Programme at Level 1 (joined in 2019) › Signatory to Airport Council International’s NetZero 2050 Resolution (signed in 2019) › Donations to several charities GRI 102-40 LIST OF STAKEHOLDER GROUPS / 102-42 IDENTIFYING AND SELECTING STAKEHOLDERS Stakeholder Group

Type of Engagement

Frequency of Engagement

All

Website

Daily

Facebook

Daily

Twitter

Daily

Email / Web contact

As needed

ASQ Survey

Quarterly

On-site Advertising

Daily

Customer Service Team Interaction

As needed

Passengers

CONTRACTED Cleaning (Servizi Malta)

Feedback Forms

Security (G4S)

113

Flight Information Display System Investors

SITA Management

Applications

Networks

Electronics

SELF-EMPLOYED Maintenance

1 + 2 (sub-contracted)

Media

Company Announcements

As needed

Shareholders’ Newletter

Periodically

Phone / Email contact

As needed

Annual Report

Yearly

Traffic Results

Monthly

Press Releases

As needed

Traffic Results

Monthly

Email / Phone Contact

As needed

Meetings

As needed

Hospitality Events

Yearly

Key Interests • • • • •

Airport operation and development Passenger Experience Retail offering and airport value Route Network Facilities and Services

• • • • • •

Passenger Experience Retail offering and airport value Facilities and Services Waiting times, cleanliness, ambience Flight Information Route Network

• • • • • •

Airport operation and development Terminal Facilities & Services Share Price Financial performance Traffic growth Corporate governance

• • • • •

Airport operation and development Traffic growth Weather Safety and Security Environmental Impact

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 53

GENERAL DISCLOSURES

GRI 102-43 REPORT THE ORGANISATION’S APPROACH TO STAKEHOLDER ENGAGEMENT – FREQUENCY OF ENAGAGEMENT WITH EACH STAKEHOLDER AND IF ANY ENGAGEMENT WAS SPECIFICALLY TAKEN TO PREPARE THE REPORT (INCL. SURVEYS, FOCUS GROUPS, WRITTEN COMMUNICATIONS, ETC.) The company engages with its different stakeholders via different channels, platforms, and means depending on the issue at stake. While the company strives to listen to what all of its stakeholders have to say, it makes an additional effort with regard to social, environmental, and economic issues that impact its stakeholders or matter to them.

Stakeholder Group Ground Handling Services

GRI 102-44: REPORT THE KEY TOPICS AND CONCERNS THAT HAVE BEEN RAISED THROUGH STAKEHOLDER ENGAGEMENT AND HOW THE ORGANISATION HAS RESPONDED TO THOSE KEY TOPICS AND CONCERNS, INCLUDING THROUGH ITS REPORTING. REPORT THE STAKEHOLDER GROUPS THAT RAISED THE KEY TOPICS AND CONCERNS.

Stakeholder Group

Tourism Bodies MTA, MHRA

Type of Engagement

Frequency of Engagement

Occurrence Report Meetings

Monthly

Resource Allocation

Quarterly

Customer Experience Improvements

Quarterly

Aircraft turnaround meetings and other operational requirements

Quarterly

Feedback of Airport Service Quality

Quarterly

Staff training and Competency (PRM providers)

Bimonthly

Meetings

Monthly

Day-to-day communications

As needed

Conferences

Quarterly

Aircraft and Passenger Handling Meetings (Airline Operators Committee)

Bimonthly

Terminal and Airfield Operations (Airport Users Committee)

Biannual

Day-to-day communications on Aviation & Airport Security (OMAS/AVSEC)

As needed

Type of Engagement

Frequency of Engagement

Local Advertising

Periodically

On-site Advertising

Daily

Events

As needed

Students

Job Shadowing/Placements

Ongoing

• Hands-on work experience • Experience in a work environment

Airlines

Day-to-day communications

As needed

Conferences

As needed

Meetings

As needed

• • • • •

Biannual

Airport Emergency Planning meeting (AFM, CPD, MDH, Malta Police)

As needed

Events Newsletter

Quarterly

Aerodrome Regulatory Meeting (TM-CAD)

Bimonthly

Local Council meetings to discuss ongoing concerns

Biannual

Feedback of Airport Service Quality

As needed

Resource Allocation Meetings

As needed

Employee Survey

Biannual

Consultative groups

As needed

Day-to-day communications as part of operational management

Daily

Occupational Health & Safety Committee

Bimonthly

Connections Employee Magazine

Biannual

Exit interview

As needed

Departmental Meetings

Quarterly

Performance reviews (management team)

Biannual

Internal Marketing News

As needed

Landside / Local Visitors

Local Community

Tenants

Suppliers

Meetings with main operators

Monthly

Marketing Initiatives Meetings

Quarterly

Ad hoc meetings

As needed

Day-to-day communications

As needed

Key Supplier Meetings

Monthly

Presentations (Pax Survey)

Biannual

Feedback and improvements meeting (Fuel Services Provider)

Monthly

Feedback of Airport Service Quality

As needed

Improvement on existing procedures and feedback on airlines' comments (MATS)

Bimonthly

Key Interests • Retail offering and airport value • Parking Availability - Value

Operational Issues - Slots, Timely processes Charges - Incentives Safety & Security Airport planning and development Airport services

• • • •

Traffic Congestion Air Quality Noise Impact of airport developments

• • • • • •

Passengers - Experience and Growth Business continuity planning Operational Issues Staff benefits - parking etc. Marketing Collaborations Customer feedback and consumption trends

• • • • • •

Airport safety and security Ethics and integrity Health & Safety Service performance Supply chain management Procurement practices

Regulators / Committees (incl. Customs Authority, Immigration Authority, Airline Operators Committee, Airport Users Committee)

Employees

Key Interests • • • • •

Capacity constraints - airport planning Operational efficiency Safety & Security Passenger experience Passenger growth

• • • •

Connectivity Airline satisfaction Passenger Growth Customer experience

• • • •

Capacity constraints Airport planning and development Operational issues Airport safety and security

• • • • • • •

Occupational Health and Safety Business continuity and strategic planning Staff remuneration, benefits and well-being Job Satisfaction Operational issues Corporate governance Compliance

GRI 103-2 NUMBER OF GRIEVANCES ABOUT IMPACTS ON SOCIETY FILED, ADDRESSED, AND RESOLVED THROUGH FORMAL GRIEVANCE MECHANISM As per the company’s Collective Agreement, employees can report grievances through Clause 39 of the Grievances Procedure. No such grievances were reported during the year under review.

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 55

ECONOMIC

Economic GRI 201-1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED

Direct Economic Value Generated

2019

2018

Revenues

€100,232,676

8.7%

€92,191,719

Sale of Assets

€283,603

35.8%

€208,765

Financial Investments

iii

€37,436

(633.2%)

(€7,021)

€100,553,715

11.9%

€92,156,372

Economic Value Generated

2019

Operated Costs

Employee Wages and Benefits

Payments to Providers of Capital

Payments to Government

vii

Community Investmnets

viii

Malta International Airport is bound by a Collective Agreement with two workers’ unions. This represents employees to an entry level wage that is, at least, 49%  higher than the minimum wage. However, as tabulated below, average actual entry level wages exceed the wages stipulated in the Collective Agreement. To calculate the wages tabulated below a payroll report covering up until the 31st December 2019 was extracted. Following this, employees were split into the three categories indicated below and employees who terminated their employment with the company during the year under review were removed. The pro-rata basic and gross salary was calculated for employees working reduced hours and employees working on a part-time basis.

2018

€25,849,709

(6.7%)

€27,706,864

€10,839,794

11.2%

€9,747,167

€18,315,535

33.9%

€13,678,915

€18,663,780

11.3%

€16,763,212

€386,359

25.7%

€307,262

€74,055,177

9.1%

€67,859,754

Economic Value Retained EVG-EVD

GRI 202-1 RATIO OF STANDARD ENTRY WAGE LEVEL BY GENDER COMPARED TO THE LOCAL MINIMUM WAGE

Entry Level Wage 2019 (as per Collective Agreement)

Ratio to Minimum Wage

Actual Entry Level Wage 2019 Males

Ratio to Minimum Wage

Actual Entry Level Wage 2019 Females

Ratio to Minimum Wage

Minimum Wage Full-time 18years+ 2019

Administration

€14,830 

€162 

€16,941 

185% 

€16,941 

185% 

€9,144

Operational

€16,655 

€182 

€16,655 

182% 

€17,364 

190% 

€9,144

Technical

€15,810 

€173 

€18,949 

207% 

€0 

0% 

€9,144

GRI 203-2 SIGNIFICANT INDIRECT IMPACTS DIRECT

INDIRECT

INDUCED

CATALYTIC

TOTAL

€208

€80

€82

€292

€662

3,800

2,100

2,300

7,100

15,300

JOBS

INCOME € billion

GDP € billion

% of National GDP

DIRECT

3,800

0.12

0.21

2.9%

DIRECT, INDIRECT & INDUCED

8,200

0.21

0.37

5.1%

CATALYTIC

7,100

0.21

0.29

4.1%

15,300

0.34

0.66

9.2%

GDP (€ million) €26,498,538

9.1%

€24,296,618

€26,498,538

9.1%

€24,296,618

Employment

GRI 201-4 FINANCIAL ASSISTANCE RECEIVED FROM GOVERNMENT Malta International Airport did not receive any financial assistance, including grants and subsidies, from government in any form whatsoever. The Government of Malta has a stake in Malta International Airport, as a result of which it receives returns in the form of dividends. This shareholding is always reported in the financial statements.

TOTAL Source: The Economic Impact of European Airports (2015)

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 57

ENVIRONMENTAL

Environmental GRI 305-1 DIRECT (SCOPE 1) GHG EMISSIONS

GRI 302-1 ENERGY CONSUMPTION WITHIN THE ORGANISATION

2018 (litres)

2019 (litres)

Emission Factor kg CO2 /litre

2018 CO2 (Tonnes)

2019 CO2 (Tonnes)

Fuel used by generators – Diesel

7,761

10,827

2.675

20.76

28.96 

Fuel used by vehicles – Petrol

2,237

2,039

2.272

5.08

4.63 

Fuel used by vehicles - Diesel

60,455

75,294

2.675

161.72

201.411 

70,453

88,160

ELECTRICAL ENERGY Description

2018 (kWh)

2019 (kWh)

Electrical energy brought for Enemalta for Airfield & Terminal Operations

12,495,288*

12,331,794 

602,571*

972,223 

834,520*

819,763



13,775,843*

13,638,358



Electrical energy produced by the Malta Airport PV system Electricity consumption of SkyParks Business Centre Total net electrical energy consumed by the organisation

Source of Emission

Total for the organisation

187.56

235.00



*Restated calculations and results FUEL Description

Fuel type

2019 (litres)

490

2,370 

Electricity bought from Enemalta (kWh)

7,070

7,776 

Emission factor kg CO2/kWh

201

681 

60,455

75,294 

68,216

86,121 

2,237

2,039 

2,237

2,039 

Fuel used by terminal generators Fuel used by airfield generators Diesel Fuel used by SkyParks generators Fuel used by vehicles Total volume of diesel used by the organisation Fuel used by vehicles

Petrol

Total volume of petrol used by the organisation GRI 302-3 ENERGY INTENSITY Year Passenger Movements Energy Intensity – (Net electrical consumption per passenger in kWh/passenger)

2018

2019

Change 2018/2019

6,806,232*

7,310,033*

8.35%

2.02

1.87

(6.83%)

*This figure does not include transit passengers and freight as they do not contribute significantly to emissions.

GRI 303-3 WATER RECYCLED AND USED Total water withdrawal 2018 Rainwater collected / stored for re-use 2018 % of recycled water used, 2018

Total water withdrawal 2019 Rainwater collected / stored for re-use 2019 % of recycled water used, 2019

GRI 305-2 ENERGY INDIRECT (SCOPE 2) GHG EMISSIONS

2018 (litres)

2018

2019

13,778,688

13,565,336 

0.383*

0.383* 

5,277,238

5,195,524 

5,277

5,196 

CO2 emissions (kg) CO2 emissions (Tonnes) *The emission factor used here was revised downwards from 0.443 kg CO2 / kWh following the publication of the official residual mix emission factor for 2018 by the main electricity provider for the Maltese islands. The original figures reported for 2018 were revised using the new emission factor in order for a fairer comparison to be drawn when compared with the figure for the year under review. An updated emission factor for the year under review had not been received at the time of writing the report.

GRI 3017-1 NON-COMPLIANCE WITH ENVIRONMENTAL RULES AND REGULATIONS No fines or non-monetary sanctions for non-compliance with environmental laws and regulations were imposed on Malta International Airport, and no complaints regarding environmental issues were reported to Malta International Airport for the year under review. Data regarding regulatory visits and subsequent correspondence has yet to be compiled.

172,804 m3 56,232 m3 33%

159,324 m3  42,541 m3  27% 

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 59

SOCIAL

Social GRI 205-1 OPERATIONS ASSESSED FOR RISKS OF CORRUPTION The company’s risk register includes an area, which presents a potential risk of corruption.

MANAGEMENT

PROFESSIONALS

COLLECTIVE AGREEMENT EMPLOYEES

Health Insurance

Ethical conduct in supplier relationships

Group Life Insurance

Bribery / corruption of Malta International Airport officials in the award and administration of supplier Purchase Order to contracts.

Redundancy Payments

DEPARTMENT

PROCUREMENT & ADMINISTRATION

LIST OF BENEFITS

Key Business Function

Procurement Management

Main Objective Key Risk

GRI 205-3 CONFIRMED INCIDENTS OF CORRUPTION AND ACTIONS TAKEN The Company has never been involved in allegations relating to corruption and no incidents of corruption have been reported or confirmed. For the sake of completeness, the company also wishes to disclose that a former CEO was dismissed on the basis of allegations that he disclosed information pertaining to the company. The former CEO is contesting the allegations before the Malta Industrial Tribunal. The former CEO is contesting the allegations before the Malta Industrial Tribunal.

Allowances for working in dangerous areas

Transport Arrangements

Uniforms

Dry Cleaning

Wellbeing Allowance

Welfare Fund

Employee Car Parking GRI 206-1 TOTAL NUMBER OF LEGAL ACTIONS FOR ANTI-COMPETITIVE BEHAVIOR, ANTI-TRUST, AND MONOPOLY PRACTICES AND THEIR OUTCOMES There were no antitrust or anti-competitive actions involving MIA during the reporting period.

AGE GROUPS

FEMALE

Hired

Left

Hired

Left

Under 30 years

17 

4.40% 

6

1.55% 

13 

3.37% 

7

1.81% 

30 - 50 years

17 

4.40% 

5

1.30% 

10 

2.59% 

4

1.04% 

Over 50 years

1

0.26% 

5

1.30% 

0

0.00% 

0

0.00% 

GRI 401-2 BENEFITS PROVIDED TO FULL-TIME EMPLOYEES THAT ARE NOT PROVIDED TO TEMPORARY OR PART-TIME EMPLOYEES, BY SIGNIFICANT LOCATIONS OF OPERATION The majority of full-time employees are covered by the Collective Agreement. The Collective Agreement splits employees into three categories: Administration, Technical and Operations. All employees in the three categories benefit from the below list under ‘Collective Agreement Employees’. Part-time employees are also eligible for the benefits on the next page.

Company Bonus

GRI 401-1 NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER, BY AGE GROUP AND GENDER MALE

x x

Disability & Retirement Benefit

Injury Benefit

Bereavement Leave

Marriage Leave

Study Leave

Birth of Child Leave

Reward & Recognition Scheme

Company Doctor

Monetary Discounts - at MIA outlets

Discretionary Performance Bonus

Communication Allowance

Mobile Allowance

Airport VIP Lounge membership

Gym membership

Unpaid Special Leave

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SOCIAL

GRI 401-3 PARENTAL LEAVE During the reporting period no one applied for parental leave. This is not a popular type of leave amongst MIA employees as the Company provides employees with up to one (1) year unpaid special leave which is taken after maternity leave, subject to approval by the company.

DISCLOSURE 102-18 GOVERNANCE STRUCTURE / GRI 405-1 DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEES The company has 12 different committees and executive bodies in place that govern different aspects that are of interest to the company. These committees and bodies convene regularly, creating a space where employees from different departments shares their skills, expertise, and concerns.

GRI 403-2 TYPES OF INJURY AND RATES OF INJURY, OCCUPATIONAL DISEASES, LOST DAYS, AND ABSENTEEISM, AND NUMBER OF WORK-RELATED FATALITIES

INJURY RATE

Number of injuries

LOST DAY RATE

Number of days lost

ABSENTEE RATE

(Actual absentee days lost / Days scheduled to be worked)*100%

FEMALES

MALES

TOTAL

UNDER 30

30 TO 50

OVER 50

TOTAL

Board of Directors

1

7

0

6

2

0

Executive Committee

1

10 

0

8

3

68.80 

0

Welfare Fund Committee

2

0

2

Sports & Social Committee

8

3

7

1



Occupational Health & Safety Committee

2

6

1

6

1

Terminal Emergency Planning Committee

3

5

2

5

1

Audit Committee

1

3

0

4

0

Corporate Responsibility Committee

2

5

1

4

2

Customer Experience Committee

5

6

1

9

1

Finance Committee

1

5

0

4

2

Risk Management Committee

3

4

1

6

0

GDPR Committee *

2

5

0

6

1

MALE EMPLOYEES

FEMALE EMPLOYEES

10 

4.01%

3.28%

GRI 404-1 AVERAGE HOURS OF TRAINING PER YEAR, PER EMPLOYEE, PER GENDER, AND PER EMPLOYEE CATEGORY

Formal Training Average number of hours (of formal training) per employee

MALE

FEMALE

MANAGEMENT

8,060 

3,847 

975 

32.35



28.08



28.68



ADMINISTRATION

OPERATIONS

TECHNICAL

TOTAL

1,661 

7,971 

1,301 

11,908

23.39



37.07



19.71



30.85

COMMITTEE



In addition to the above-mentioned training hours, a tailor-made programme allowed new employees who joined the customer services team to get 640 hours of on-the-job and classbased training. Moreover, in 2019, the airport fire-fighting team benefitted from over 3,800 hours of theoretical, practical and familiarisation training. More than 4,000 hours of physical fitness training was logged by the crew over the year, and the onboarding of 7 new employees that joined the fire-fighting team totalled 2,240 hours

GRI 404-3 PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER REVIEWS BY GENDER AND BY EMPLOYEE CATEGORY. TOTAL EMPLOYEES

MANAGEMENT

PROFESSIONALS

FEMALE

137

16.79 

MALE

249

18.88 

TOTAL

386

100 

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SOCIAL

GRI 405-1 BREAKDOWN OF EMPLOYEES PER EMPLOYEE CATEGORY ACCORDING TO GENDER, AGE GROUP AND MINORITY GROUP MEMBERSHIP, AND OTHER INDICATORS OF DIVERSITY. Employment Category/Gender

GRI 405-2 RATIO OF BASIC SALARY AND REMUNERATION OF MEN TO WOMEN, BY EMPLOYEE CATEGORY AND SIGNIFICANT LOCATIONS OF OPERATION

AGE

UNDER 30

30-50

OVER 50

TOTAL



Females



ADMINISTRATION



MANAGEMENT Males

Males



Females



OPERATIONS



Males

32 

64 



101



39 

16 

37 

14 

67 

Males

14 

36 

14 

64 

Females

2

1

0

3

78 

24 

10 

Ratio – Average Basic Salary

1.00 

0.68 

Ratio - Average Gross Salary

1.00 

0.63 

26 

44 

Ratio – Average Basic Salary

1.00 

1.02 

Ratio - Average Gross Salary

1.00 

0.99 

Operations

135 

80 

Ratio – Average Basic Salary

1.00 

1.01 

Ratio - Average Gross Salary

1.00 

64 

3

Ratio – Average Basic Salary

1.00 

1.07 

Ratio – Average Gross Salary

1.00 

0.99 

Management

Technical 



TECHNICAL

195 

FEMALE EMPLOYEES

Administration

135 

113 



215

Females

TOTAL



MALE EMPLOYEES

386 

GRI 410-1 SECURITY PERSONNEL TRAINED IN HUMAN RIGHTS POLICIES AND PROCEDURES In 2017, the company did not organise any training programmes on human rights policies and procedures concerning aspects of human rights that are relevant to operations. GRI 412-2 EMPLOYEE TRAINING ON HUMAN RIGHTS POLICIES AND PROCEDURES Throughout 2019, the most salient points of the Human Rights Policy were communicated to new employees. In addition to this, the policy is available on Compass; an internal platform which can be accessed by the majority of employees. GRI 414-1 PERCENTAGE OF NEW SUPPLIERS THAT WERE SCREENED USING CRITERIA FOR IMPACTS ON SOCIETY The company does not screen new suppliers with regard to their products’ impact on society. GRI 414-2 SIGNIFICANT AND ACTUAL AND POTENTIAL NEGATIVE IMPACTS ON SOCIETY IN THE SUPPLY CHAIN, AND ACTIONS TAKEN. There were no significant, actual or potential negative impacts on society in the supply chain. GRI 415-1 POLITICAL CONTRIBUTIONS As stipulated in the Company’s Business Conduct & Ethics Policy, this is not acceptable and it is specified in Point 3.1.3 of same policy that: “Political contributions on behalf of MIA to a political campaign, political party or to any activity in support of a political party, shall not be made. Political contributions can include monetary items, non-monetary items (such as loaned or donated equipment, or free

technology services) or use of corporate resources (such as facilities, e-mail, stationery, or personnel time).” GRI 416-1 PERCENTAGE OF SIGNIFICANT PRODUCT AND SERVICE CATEGORIES FOR WHICH HEALTH AND SAFETY IMPACTS ARE ASSESSED FOR IMPROVEMENT The company does not carry out such assessments of its product and service categories. GRI 416-2 TOTAL NUMBER OF INCIDENTS OF NON-COMPLIANCE WITH REGULATIONS AND VOLUNTARY CODES CONCERNING THE HEALTH AND SAFETY IMPACTS OF PRODUCTS AND SERVICES DURING THEIR LIFE CYCLE, BY TYPE OF OUTCOMES There were no incidents of non-compliance with regulation and voluntary codes concerning the health and safety impacts of products and services. GRI 417-3 INCIDENTS OF NON-COMPLIANCE REGARDING MARKETING COMMUNICATIONS The Marketing & Communications Department confirmed that there is nothing to report on this point. GRI 418-1 SUBSTANTIATED COMPLAINTS CONCERNING BREACHES OF CUSTOMER PRIVACY AND LOSSES OF CUSTOMER DATA The Company did not receive any complaints from outside parties or from regulated bodies in relation to breaches of customer privacy and losses of customer data.

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GRI CONTENT INDEX

APPENDIX 4:

GRI Content Index GRI DISCLOSURE NUMBER

GRI DISCLOSURE DESCRIPTION

REPORTED ON PAGE/S

GRI 102: General Disclosures 2016 Organisational Profile

GRI DISCLOSURE NUMBER

GRI DISCLOSURE DESCRIPTION

REPORTED ON PAGE/S

103-1

Explanation of the material topic and its boundary

201-1

Direct economic value generated and distributed

201-2

Financial implications and other risks and opportunities due to climate change

201-4

Financial assistance received from government

202-1

Ratios of standard entry level wage by gender compared to local minimum wage

202-2

Proportion of senior management hired from the local community

203-1

Infrastructure investments and services supported

203-2

Significant indirect economic impacts

Procurement Practices

204-1

Proportion of spending on local suppliers

Anti-corruption

205-1

Operations assessed for risks related to corruption

205-3

Confirmed incidents of corruption and action taken

206-1

Legal actions for anti-competitive behaviour, anti-trust and monopoly practices

302-1

Energy consumption within the organisation

302-3

Energy Intensity

302-4

Reduction of energy consumption

303-1

Water withdrawal by source

303-2

Water sources significantly affected by withdrawal of water

303-3

Water recycled and reused

305-1

Direct (Scope 1) GHG emissions

GRI 103: Management Approach 2016 102-1

Name of organisation

102-3

Location of headquarters

102-4

Location of operations

102-5

Ownership and legal form

102-6

Markets served

102-7

Scale of organisation

102-8

Information on employees and other workers

102-9

Supply chain

102-10

Significant changes to its organisation & supply chain

102-11

Precautionary principle and approach

102-12

External initiatives

102-13

Membership of associations

102-14

Statement from senior decision maker

102-16

Values, principles, standards and norms of behaviour

Ethics & Integrity

102-18

Governance structure

Governance

102-40

List of stakeholder groups

Stakeholder Engagement

102-41

Collective bargaining agreements

102-42

Identifying and selecting stakeholders

53 - 55

GRI 300: Environmental Performance 2016

102-43

Approach to stakeholder engagement

53 - 55

Energy

102-44

Key topics and concerns raised

53 - 55

102-45

Entities included in the consolidated financial statements

102-46

Defining report content and topic boundaries

6-7

102-47

List of material topics

6-7

102-48

Restatements of information

102-49

Changes in reporting

102-50

Reporting period

102-51

Date of most recent report

305-2

Energy indirect (Scope 2) GHG emissions

102-52

Reporting cycle

305-4

GHG emissions intensity

102-53

Contact point for questions regarding the report

102-54

Claims of reporting in accordance with the GRI Standards

102-55

GRI content index

66 - 68

102-56

External Assurance

49 - 51

Strategy

Reporting Practice

9 Back Cover 9 10

GRI 200: Economic Performance 2016 Economic Performance

9 8 - 10 26, 27, 29, 52

23, 53

Market Presence

Indirect Economic Impacts

53 8

31, 56

4-5

53 - 55 10, 28

Anti-competitive behaviour

8 Water

Emissions

OUR SHARED FUTURE: 5 YEARS IN THE MAKING | MALTA INTERNATIONAL AIRPORT | 67

GRI DISCLOSURE NUMBER

GRI DISCLOSURE DESCRIPTION

306-2

Waste by type and disposal method

306-3

Significant spills

307-1

Non-compliance with environmental rules and regulations

401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

401-3

Parental leave

Labour/Management Relations

402-1

Minimum notice periods regarding operational changes

Occupational Health & Safety

403-1

Work representation in formal joint management-worker health and safety committees

403-2

Types of injury and rates of injury, occupational diseases, lost days, absenteeism, and number of work-related fatalities

403-3

Workers with high incidence or high risk of diseases related to their occupation

403-4

Health and safety topics covered in formal agreements with trade unions

404-1

Average hours of training per year per employee

404-2

Programmes for upgrading employee skills and transition assistance programmes

404-3

Percentage of employees receiving regular performance and career development reviews

405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of women to men

Security Practices

410-1

Security personnel trained in human rights policies or procedures

Human Rights Assessment

412-2

Employee training on human rights policies and procedures

Local Communities

413-2

Operations with significant actual and potential negative impacts on local communities

Supplier Social Assessment

414-1

New suppliers that were screened using social criteria

Public Policy

415-1

Political contributions

Customer Health & Safety

416-1

Assessment of the health and safety impacts of product and service categories

416-2

Incidents of non-compliance concerning the health and safety impacts of products and services

Marketing & Labelling

417-3

Incidents of non-compliance regarding marketing communications

Customer Privacy

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

Effluents & Waste

Environmental Compliance

REPORTED ON PAGE/S

Notes

GRI 400: Social Performance 2016 Employment

Training and education

Diversity & Equal Opportunity

60-61

21 - 22

19, 27 62 63 - 64

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Notes

This report was printed on TCF (Total Chlorine Free) and FSC (Forest Stewardship Council) certified paper. These certifications indicate that the wood used in the production of the paper came from sustainable forests and that no chlorine was released in rivers during the production process.

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